Cancer remains the leading cause of claims

Reconnaissance is a mission to obtain information by visual observation or other detection methods about the activities and resources of an enemy or potential enemy. It is a vital component when it comes to winning wars as if you know your enemy, you can exploit its weaknesses.

Data has also become an important aspect in the financial services industry, and the struggle to find new growth in the industry is no different to fighting a war. By having valuable data on hand, an insurer can tailor make products to cater for individual needs which allow clients to feel that they are valuable to an insurer.

Cancer retains the lead

Cancer remains the largest cause of claims, followed by cardiac and cardiovascular conditions. Over the years, the trends on cancer have been consistent.

With medical advancements such as better screening programmes and more awareness around health and lifestyle, cancers are being diagnosed earlier and at younger ages, and people are more likely to survive a cancer diagnosis than before.

Top of the charts

The vast majority of payments - with a total value of R2.48 billion - were for claims on life protection while R678 million in critical illness protection claims were settled. At least R407 million was paid for income protection.

Although the top five claims causes constitute 64,9% of all claims paid, the more interesting findings have been on what segments, in terms of age are life stage, were claimed for.

Young successful people mostly claimed for loss of income, mainly due to retrenchment. Retrenchment claims were at 15.9%, cancer at 12.3% and motor vehicle accident claims at 11.9%. This was also the main cause of claims among men in this age group.

The top three claims for young parents were for cancer at 22.5% (largely driven by female breast cancer claims), cardiovascular related claims at 14.5% (which is the biggest risk factor for males) and finally, strokes or central nervous system disorder claims at 8%.

For established providers, the trends were cancer claims at 26.9% (prostate cancer for males and breast cancer for women), cardiovascular related claims at 21.1% (again the biggest risk factor for males), and stroke or central nervous system disorder claims at 8.7% of claims.

For the older generation, whose kids already left home, cancer claims were at 25.6% (with prostate and breast cancer being the most common), cardiovascular disorder claims at 25.3% and respiratory diseases or disorder claims at 7.9%.

A friend in uncertain times

What is the value of life insurance? To be a certain friend during uncertain times. In an age where non communicable diseases are becoming more prevalent, clients cannot afford not to have insurance. Every client wants to provide for their family and critical illness cover allows them to do so when tragedy strikes.

It is about building relationships. It is moving beyond being a product provider to becoming a valuable business partner. Data such as claims statistics allows the industry to tailor make products to show that the industry truly care about the lives of clients.